Unidym, a majority owned subsidiary of Arrowhead Research (NASDAQ:ARWR) announced today that it has finalized an agreement with Tokyo Electron (TEL) to develop manufacturing equipment for carbon nanotube based displays and solar cells. TEL is the second largest semiconductor production equipment manufacturer in the world.

“The partnership with TEL is critical in providing a complete manufacturing solution to our customers in the LCD and solar industries,” said Mark Tilley, President and CEO of Unidym. “TEL is one of the world leaders in wet coating technology, and they have direct channels to market in the display and solar industries.”

“We are impressed with Unidym’s leadership in expanding CNT applications into the electronics, display and PV markets. We believe Unidym’s CNT ink and our coating platform solution will present a great value to our customers.” said Taku Kawauchi, marketing group leader, Tokyo Electron Flat Panel Display business unit.

Under the terms of the agreement, Unidym and TEL will develop a coating tool for LCD and solar manufacturers to use in coating Unidym’s electronic inks into their devices.

The companies intend to cooperate in marketing the CNT electronic inks and coating equipment to their joint customers.